Most economists agree that the immediate determinant of the volume of output and employment is the
A) composition of consumer spending.
B) ratio of public goods to private goods production.
C) level of total spending.
D) size of the labor force.

Question

Quizplus · Accepted Answer

Most economists agree that the level of total spending is the immediate determinant of the volume of output and employment. This is because when total spending increases, businesses need to produce more goods and services, leading to an increase in output and employment. Conversely, when total spending decreases, businesses need to produce fewer goods and services, leading to a decrease in output and employment.

Most Economists Agree That the Immediate Determinant of the Volume